Following the 2023 freight downturn, carriers and brokers stay in this extended freight recession for the first half of 2024. While this is intimidating, it is not permanent, as we can see fluctuations in the horizon. Freight demand cycles will balance out with the approach of the produce season, setting carriers and brokers at ease.
Understanding the supply chain’s impact on freight, why there is a temporary downturn, and the role of trucking in the supply chain will give you insight into the positive outcome for freight and its rates. It will also empower you to effectively navigate supply chain distribution, optimize your transport processes, and gain a competitive advantage.
Trucking is critical to safeguarding supply chains. From crucial medical supplies to groceries, this service ensures that consumers can access the essentials while fueling our economy. Truck drivers fulfill these specific roles in the supply chain:
Truck drivers also face several challenges which they often navigate thanks to their unwavering determination to deliver reliable, valuable services:
Supply chain distribution relies heavily on efficient routing by using technology to optimize delivery routes and minimize empty miles. One of the biggest challenges in supply chain distribution is unforeseen disruptions resulting from extreme weather, geopolitical uncertainty, and energy shortages. Navigating these challenges requires:
Other challenges extend to:
Several positive events and trends will reshape the domestic trucking industry, leaving us with a more efficient, connected, and sustainable way forward. Trends that are shaping the supply chain right now include:
On the morning of Tuesday, March 26th, 2024, a cargo ship called the Dali ran into the Francis Scott Key Bridge in Baltimore, causing part of the bridge to collapse. In addition to the tragic loss of life, this event will cause significant hurdles for the shipping industry, cutting off access to an essential point of entry for many national and international suppliers.
The Port of Baltimore, where the accident occurred, handled over $80 billion in cargo during 2023, serving over 50 ocean carriers and doing 1,800 annual port calls. The port also supports nearly 140,000 jobs and plays a crucial role in many different supply chains and logistics. As crews work to clear the port and repair the bridge, the national and global supply chain will take a hit.
Disruptions at a port of entry increase delivery times and transportation costs and compromise product quality. Trucking companies, in particular, now need to reroute or reschedule their shipments, which leads to delays and inefficiencies in freight movement. Working through these snowballing challenges effectively requires advanced planning, real-time visibility into truck movements, and collaboration among stakeholders.
The challenges in 2024’s freight market are very similar to those in 2023. However, post-recession growth is on the horizon. Trucking is vital in navigating and shaping supply chains, especially in domestic logistics. Staying up to date on technological innovation can help us navigate this bump in the road with ease.
Keller Trucking, an affiliate of Keller Logistics Group, has stayed up-to-date on freight trends since 1978. With us, you get custom solutions with advanced technology and industry compliance with over 300 tractors and 900 dry van food-grade trailers. When you partner with us, you can expect highly competitive domestic trucking rates, additional warehousing, contract packaging, and distribution services. Contact us today for a comprehensive quote or call 419-780-3767 for urgent queries.
Learn more about what makes Keller Logistics Group and its affiliates the best choice for your company’s 3PL logistics needs. Contact us to learn more about our services and request a no-obligation quote. Call 419-780-3767 or return our online contact form today.